Inflated figure made up of what the dealer actually buys your trade for plus the discount off the new car
When you purchase a property and offer another property as partial payment, this reduces the amount of cash you need to pay the seller to satisfy the purchase agreement. The amount of cash reduced by this exchange is the trade-in allowance. For example, you trade-in your old car when purchasing a new one to reduce the amount of cash you must give to the dealer. Note that a dealer's offer for your car as a trade-in on a new car does not necessarily reflect a measure of its true value.
A credit amount given to a customer upon purchase of a new auto, in exchange for their old auto (property). This credit amount may reduce the cash price of the new purchase.
The amount by which the seller reduces the sale price of a property in return for the property of the buyer. This does not affect the buyer's basis in the property purchased.
The net credit given to a buyer or lessee for a vehicle traded in (whether or not the traded vehicle is owned or being leased).
The agreed-upon value of the vehicle being traded in toward the purchase of a new vehicle.
The agreed upon value of the vehicle being traded-in towards the purchase of a new car.
Trade-in allowance is the dollar value the dealer assigns to a customer's current vehicle that he or she is exchanging, or trading in, for a new vehicle. Trade-in allowance is also called trade-in value. This dollar amount is subtracted from the purchase price of the new vehicle. Trade-in value is often based on book values published by an independent rating service such as Kelley Blue Book. In general, the less mileage and better the condition of the trade-in, the greater its trade-in value will be. Certain makes of vehicles retain higher trade-in values.